U.S. existing-home sales plunged 5.5% in October to a seasonally adjusted annual rate of 3.75 million, the lowest since August 2010 and below forecasts of 3.89 million; sales were down 8.8% from a year earlier.

The decline extended a prolonged slump, with sales below a 4-million annual pace for three straight months—well under the roughly 5.2-million historical norm.

Sales fell year over year in every region, dropping 4.1% in the Northeast, 8.2% in the Midwest, 8% in the South and 14.5% in the West; month over month, they were unchanged in the Northeast and declined elsewhere, led by a 9.7% drop in the West.

The October fall followed a record-low pending-home-sales index of 66.0 in September, and pending contracts typically precede completed sales.

High home prices and borrowing costs have kept buyers on the sidelines, with the 30-year fixed mortgage rate averaging 7.18% last week after rising to 7.40% in mid-September; rates had fallen below 6% in February 2026 and averaged just above 3% during the pandemic.

That recent easing in mortgage rates could prove temporary: on November 12, the 10-year Treasury yield rose to 5.108% and the 2-year yield to 4.869%, as inflation concerns and higher oil prices lifted bond yields that influence mortgage pricing.

The prospect of another Federal Reserve rate increase in December adds to the pressure on housing, while a report on home sales is also watched as a gauge of market health and broader economic conditions.

Realtor.com chief economist Danielle Hale attributed the downturn to a sudden shift in financial conditions, pre-election uncertainty over policy and the economy, and the usual seasonal slowdown—not a new normal for home sales.

Supply is expanding: unsold homes totaled 1.59 million at October’s end, the highest since November 2019, and represented a 5.1-month supply, within the traditionally balanced range of four to six months.

Homes took a median of 35 days to sell, giving buyers more time and contributing to price cuts; about 20.5% of active listings had reduced their initial asking price.

Despite weaker sales, the median existing-home price rose 0.4% year over year to $416,700, an October record in data going back to 1999 and the 40th consecutive month of annual gains; however, it was the smallest yearly increase since February.

First-time buyers made up just 29% of sales, down from 32% a year earlier and below the roughly 40% share associated with a robust market.